Use the following information for the next 7 questions.
Brady, Inc. uses a normal absorption costing system in which the overhead rate and variable manufacturing costs have remained unchanged for the last 2 years. During the current year the following activity occurred: The firm had no beginning or ending work in process inventories. However, there were 1,000 units in beginning finished goods.
-The fixed overhead in cost of goods sold amounted to
A) $90,000
B) $66,960
C) $72,000
D) $84,960

Question

Use the following information for the next 7 questions.
Brady, Inc. uses a normal absorption costing system in which the overhead rate and variable manufacturing costs have remained unchanged for the last 2 years. During the current year the following activity occurred:  The firm had no beginning or ending work in process inventories. However, there were 1,000 units in beginning finished goods.
-The fixed overhead in cost of goods sold amounted to
A) $90,000 
B) $66,960 
C) $72,000 
D) $84,960

Quizplus · Accepted Answer

The fixed overhead in cost of goods sold is typically calculated based on the budgeted or standard fixed overhead rate applied to the actual production level. Without additional context or data, $72,000 is the most likely correct choice based on typical fixed overhead allocations.

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